Wikinvest Wire

An electronic run on the bank? Rollover?

Sunday, February 08, 2009

A similar video of Rep. Paul Kanjorski's C-SPAN appearance where he detailed the Sept. 15th meeting between Treasury officials and members of Congress was seen over at The Daily Bail a while ago. Below is the YouTube version enhanced with clips from the 1981 movie Rollover.

And a couple more references from Paul Kedrosky and Clusterstock along with a transcript of the important segment courtesy of the former:
It was about September 15th [sic]. … On Thursday at about 11 o’clock in the morning the Federal Reserve noticed a tremendous drawdown of, uh, money market accounts in the United States to the tune of $550-billion was being drawn out in in a matter of an hour or two.

The Treasury opened up its window to help, and pumped in $105-billion into the system, and quickly realized it could not stem the tide. We were having an electronic run on the banks. They decided to close down the operation, to close down the money accounts. … If they had not done that, in their estimation, by 2 PM that afternoon $5.5-trillion would have been withdrawn and would have collapsed the U.S. economy and within 24 hours the world economy would have collapsed.

We talked at that time about what would have happened. It would have been the end of our economic and our political system as we know it.


Anonymous said...

Cheerful little piece!

dailybail said...

tim. that was great. i liked it so much i just updated my post to link back to this one so readers could see the movie clip.

thanks, steve

Anonymous said...

Which Thursday? Does he mean September 11?

Anonymous said...

Mon. Sep. 15, 2008 was the day on which Lehman brothers filed for bankruptcy protection under Chapter 11 of the US Bankruptcy Code.

These events took place during that week, on Thu. Sep 18, 2008.

cash back real estate said...

The congressman said the electronic cash run began on Thursday, wasn't that Sept.11?

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